Cryptocurrency investment firm CoinShares is confident about cryptocurrency regulation in the United States as it enters the new market. The firm recently launched its new division, CoinShares Hedge Fund Solutions, allowing qualified U.S. investors to access its offerings for the first time.
The move comes at a time when many U.S. crypto firms are expanding their businesses outside the country due to regulatory challenges at home. Coinbase, for example, has been actively pursuing expansion in Europe and the United Kingdom amidst a lawsuit from the U.S. Securities and Exchange Commission. Critics argue that the U.S. government’s approach to crypto regulation has made the country less attractive for crypto firms.
However, CoinShares holds a different view. The firm believes that the U.S. is a global leader in digital asset development and that its regulators treat digital assets in a way that encourages the fusion of traditional and emerging financial industries. CoinShares points to the fact that the U.S. is home to 50% of globally managed assets and is a dominant financial market. The firm also highlights industry collaborations between legacy players like BlackRock and emerging firms like Circle and Coinbase.
Jean-Marie Mognetti, CEO of CoinShares, has previously stated that Europe’s approach to crypto is even more problematic compared to the financial might of U.S. institutions. He believes that U.S. financial giants such as BlackRock and Fidelity are well-positioned to provide widespread crypto exposure.
While CoinShares is bullish about the U.S. regulatory climate, it remains committed to Europe. The firm’s Hedge Fund Solutions is registered in both the U.S. and the United Kingdom. CoinShares notes that the merging of traditional finance and crypto is more apparent in the U.S., while the two sectors aren’t as interconnected in Europe.
CoinShares is one of the world’s largest crypto investment firms and is known for its crypto exchange-traded products (ETPs). The firm debuted its first Bitcoin ETP in 2015. However, CoinShares has not disclosed whether it plans to join the spot Bitcoin ETF race in the United States.
It is worth noting that CoinShares has been registered with the SEC as an exempt reporting adviser, with CoinShares Limited acting as a general partner for the private investment funds created by CoinShares Hedge Fund Solutions.
Overall, CoinShares’ entrance into the U.S. market demonstrates its optimism towards cryptocurrency regulation in the country. Despite regulatory challenges, the firm believes that the U.S. is a leader in digital asset development, and its approach to treating digital assets like traditional asset classes will encourage the fusion of the two industries. CoinShares remains committed to Europe but sees more pronounced merging of traditional finance and crypto in the U.S. market. As the firm expands its presence in the U.S., it will continue to navigate the regulatory landscape and explore opportunities in the evolving digital asset space.
